But competition remains intense to find new customers, with the bank noting mailings for all of 2011 jumped 37% to nearly 5 billion, citing data from Mintel Comperemedia. (That’s over 15 offers for every person in the U.S. for the year, or more than one a month.)
U.S. consumers received 447 million credit-card offers in the mail in November, up from 346 million a year ago, according to the most recent monthly numbers available from Mintel Comperemedia.
In the third quarter of 2011, consumers received just over 1.3 billion mail offers from credit card companies -- up from 998 million for that time period in 2010, according to Andrew Davidson, senior vice president for market research firm Mintel Comperemedia. About 64 percent of those offered an introductory APR, typically zero percent. "Competition [amongst card issuers] is very much on the rise," Davidson says, noting that many card issuers are extending their introductory periods and throwing in other perks to attract the most sought-after customers.
"It's all about the battle for share of wallet," said Andrew Davidson, senior vice president of research firm Mintel Comperemedia. "These companies that are competing at this level are making an investment in trying to obtain a customer for the long term. It's all about the lifetime value of the customer."
A recent study by Mintel Comperemedia, a mouthful of a marketing research firm, found that only one in five Americans would be willing to pay a $2 monthly debit card fee. A full 56% said they would use a different payment method, were they confronted with the fee.
Credit card mailings have surged 85% since the beginning of 2010 to 1.3 billion credit card offers in the third quarter of 2011, according to analysis conducted by research firm Mintel Comperemedia.
“It’s really difficult to charge for things that have always been free,” Susan Wolfe, vice president of financial services at Mintel, tells PaymentsSource, alluding the the public relations catastrophe surrounding Bank of America Corp.’s unsuccessful attempt to introduce a $5 monthly debit fee.
"Banks moved customers into new services like debit cards and online banking because they were cheaper and more profitable than cash and checks," says Susan Wolfe , vice president of financial services at Mintel Comperemedia. "They can't now backtrack and charge consumers for things they've been offering for years at no additional cost."
Credit card mailings have surged 85% since the beginning of 2010 to 1.3 billion credit card offers in the third quarter of 2011, according to analysis conducted by research firm Mintel Comperemedia.
In the six months through August, about 71 percent of credit-card offers to potential new customers came with teaser rates on transfers, compared with 66 percent of mailings in the same period last year, according to Mintel Comperemedia, which tracks marketing trends.
Market research firm Mintel Comperemedia found earlier this year that 23 percent of mailed credit card offers included some kind of extra incentive — like a $300 cash bonus or 100,000 bonus miles.
"Chase has really kick-started the mailbox," said Andrew Davidson, senior vice president of research firm Mintel Comperemedia. In the second quarter of this year, card companies sent nearly 1.3 billion new account offers to U.S. addresses, up from about 850 million a year earlier, said Davidson. Citibank this year has followed Chase's lead and now the two banks are responsible for most of the mail, said Davidson.
Gary Wooley, Director, Insurance Consulting at Mintel Comperemedia looked through marketing data and was “shocked by the numbers.” Although younger people may not be the ideal recipients for direct mail due to electronic methods of billing they still do receive mail. “They are interested, but they need more information and a call to action.” Wooley said.
"Perhaps this is partially a function of marketing activities," says Gary Wooley, Director, Insurance Consulting at Mintel Comperemedia. "When carriers market life insurance directly to consumers, they overwhelmingly continue to target those over the age of 45—effectively alienating other potentially lucrative demographics."
Mintel Comperemedia research shows that nearly a quarter of all credit card offers include some kind of cash back reward or signup bonus.
